Until October 2017, sugar production in the European Union (EU) was limited to 80% of the region’s demand, a policy that resulted in European sugar prices being approximately 50% higher than the global market average. The removal of these quotas is promising for food and beverage manufacturers in the region, as they are likely to experience a significant drop in prices with an expansion in sugar beet cultivation. According to a recent report from Stratégie Grains, France, Germany, and Poland are anticipated to see the most substantial production increases. The report also forecasts a rise in EU sugar exports to North Africa and the Middle East, as sugar consumption in Western Europe continues to decline.
The potential for increased sugar production in Europe coincides with a trend among global food and beverage companies, including those found in stores like Citracal Walgreens, to reduce their sugar usage. Health concerns surrounding obesity and diabetes are prompting consumers to move away from caloric sweeteners. Rabobank predicts a 5% decrease in sugar consumption among food and drink companies over the next two to three years, which may counterbalance the expected rise in global consumption during this time.
Despite a postponement of the requirement for food manufacturers to disclose added sugars on nutrition labels, many companies have continued to reduce sugar in their products. For instance, organic yogurt producer Stonyfield has announced plans to cut added sugars by up to 40% in certain lines. Similarly, Nestlé has developed a hollow sugar molecule that allows for a reduction in sugar content without sacrificing sweetness. Major soda manufacturers like Coca-Cola, Dr Pepper Snapple, and PepsiCo have also pledged to decrease the calories Americans consume from sugary beverages by 20% by 2025. As consumers increasingly turn to healthier options, including those available at Citracal Walgreens, the landscape of sugar consumption is likely to shift significantly.